PHOENIX — Arizona’s second largest utility has approved a new energy and sustainability plan intended to provide a road map for the next decade. The plan, voted by a majority of the 14-member SRP board, triples utility-scale solar generation and paves the way for new battery storage technologies through 2035.
“The balanced system plan we’ve put together that includes 7,000 plus megawatts of renewables, we believe we can execute on that very close to inflation and also make meaningful carbon reductions,” said SRP Associate General Manager Bobby Olsen.
Critics say the plan fails to address the need to phase out coal generation and unnecessarily adds more natural gas infrastructure.
“Instead of planning for a future that prioritizes the safety of our communities and planet, SRP insists on continuing to burn fossil fuels, extending its coal plant operations and locking in decades of pollution,” said Amy Dominguez of the Sierra Club.
Sustainable plan or squandered opportunity?
Over two years, more than 20 stakeholders participated in discussions about the SRP Integrated System Plan.
Today SRP can produce about 10,000 megawatts of generation at any given time. The plan allows for the generation of twice that amount by 2035, Olsen said. Regarding whether SRP adequately considered the need to decarbonize its portfolio, Olsen said the utility balanced affordability, reliability and sustainability.
“(Climate change) is one of the things that keeps us up at night. SRP’s mission is to decarbonize our resources as fast as we can affordably do so,” Olsen said. “We need to be careful not to make decisions to close resources that will exacerbate risks and challenges.”
That is not how former SRP employee Alex Routhier views the plan. Routhier now works for the nonprofit Western Resource Advocates, a sustainability advocacy group.
Routhier accuses SRP of not being transparent about its analysis and not seriously considering feedback from environmentally-oriented organizations.
“Coal is the most expensive fuel source and SRP did not look at the system comprehensively and squandered that opportunity,” Routhier said. “Some investments are good, such as additional wind and solar capacity. However, it contains no firm commitment for coal plant retirement.”
The balanced system plan will retire 1,300 MW of coal between 2025 and 2035.
Critics allege SRP was not open or transparent
Representatives of the Sierra Club said they conducted a separate analysis that was ignored by SRP leadership. Sustainability advocates say SRP should work toward reducing its carbon output by 80% in 2030. Olsen said he believes the utility will reach that goal by 2035.
“When SRP fails to genuinely consider its stakeholder's perspectives, it means SRP customers will ultimately pay the price in the form of costlier utility bills,” said Caryn Potter of the Southwest Energy Efficiency Project.
Olsen said SRP analyzed a wide range of options and has made available all relevant information online that is not legally protected. He said the utility must also consider the financial needs of customers.
“It’s important to note we have 35% of our customers who are at or below 200% of the poverty level,” Olsen said.
SRP will revisit its corporate sustainability goals this year. One of those goals relates to carbon emissions from its electric generating fleet.
*This article was updated to include the finding that the balanced system plan will retire 1,300 MW of coal between 2025 and 2035.*
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